Malta Sets October Timeline For Tax Reforms In Its Gaming Sector

Malta has confirmed major tax reforms for its gaming sector, scheduled for implementation by October 1. The new measures were highlighted in a joint statement from the Malta Tax and Customs Administration (MTCA) and Malta Gaming Authority, following consultations with industry stakeholders.

The reforms were inspired by commitments made during the national budget. They will be formalised through legal notices 84 and 86, issued on 1 April 2026. According to authorities, the goal is to refine the regulatory framework while preserving Malta’s position as a competitive hub for licensed operators.

VAT framework tightened with narrower exemptions

A key feature of this reform is the treatment of VAT across gaming products and services. The existing exemption has been revised with more specific language and now applies to “betting, lotteries and other forms of gambling, as may be approved by the Minister.”

In practical terms, this narrows the scope of what qualifies for exemption. Activities such as online betting and live casino gaming should fall within the VAT net once the rules take effect. The authorities have not yet clarified the “other forms of gambling,” but they have also raised discussions around regulating prediction markets.

Advisory firm Zampa Partners noted that sports betting has historically been exempt. Under the revised approach, this will likely apply only to betting at live sporting venues. Remote betting channels, including online platforms and retail bookmakers, would also become taxable.

Additional guidance will clarify place-of-supply rules, reinforcing the application of VAT where the service is consumed. The revised system also allows operators to efficiently recover eligible input VAT costs. 

Unified gaming tax structure simplifies obligations

Aside from the VAT changes, Malta is also restructuring how gaming taxes are applied. The new framework creates a simplified system, introducing unified tax rates for both land-based and online operators serving players within Malta.

The current split between gaming tax and device levies will be replaced with a single structure based on game type and delivery channel. This removes overlapping charges and creates a more consistent reporting model across different industry segments.

The updated system applies strictly to services within Malta, leaving out international operations. Authorities state that the changes are scheduled for October 1, giving operators time to adjust.

Cost dynamics shift as operators gain VAT recovery rights

The reforms are likely to change how operators manage costs. Though the update could increase direct tax exposure, it also gives them the ability to recover input VAT on business expenses.

Under the previous structure, many operators were exempt from paying VAT. But this prevented them from reclaiming VAT on operational costs such as technology and marketing.

Further updates on regulatory developments will be available in the Regulation Section.